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    Essentials of Entrepreneurship Study Set 2
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    Exam 7: Buying an Existing Business
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    If a Business Buyer Estimates That 20 Percent Is a Reasonable
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If a Business Buyer Estimates That 20 Percent Is a Reasonable

Question 67

Question 67

Multiple Choice

If a business buyer estimates that 20 percent is a reasonable rate of return for an existing business expected to produce a profit of $27,000, its capitalized value would be:


A) $5,400.
B) $32,400.
C) $135,000.
D) $540,000.

Correct Answer:

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